AGL freed of Loy Yang constraints

AGL Energy
is free to proceed with the buyout of its partners in the $3.1 billion Loy Yang A power station in Victoria after getting freed of legal constraints that prevented it from raising its stake beyond 35 per cent.

The Federal Court on Wednesday ordered that AGL’s undertakings given in 2004 to keep its stake in Loy Yang A holding company Great Energy Alliance Corporation to less than 35 per cent be scrapped.

The change will take effect on June 22 and AGL said in a statement it expects to complete the buyout of Tokyo Electric Power, Ratch Australia and three superfunds by June 30. It currently owns 32.5 per cent of the brown coal-fired generator, which supplies almost a third of Victoria’s electricity.